THE weekend’s 36 per cent auction clearance rate in Geelong is an indication that sellers will see agents working harder for their commissions in 2019.
Nine from 25 properties offered at auctions on Saturday had sold by the end of the weekend.
While it’s early days for Geelong’s property market that doesn’t usually get to full volume until autumn, it’s an early indication homes will take longer to sell this year after two years where some homes figuratively flew out the door.
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Valuer Mark Harmon, the Geelong manager for national valuation firm Herron Todd White, said uncertainty surrounding the Federal Government’s response to the Hayne Royal Commission report was one of the biggest influences on the market this year.
SEARCH THE WEEKEND’S SALES RESULTS
Mr Harmon said while Geelong would continue to rise, opposite to the downward trend in Melbourne, it would take longer to find buyers.
“It’s still affordable by all means. But days on market will slowly start to come out,” Mr Harmon said.
“Where homes might have sold on the first or second open or be under formal offer, now we’re starting to see that might be 20 to 30 days,” he said.
“Which is not dissimilar to a few years ago where the values were steady and there were still good sales around.”
Ray White, Highton agent Adam Natonewski said it means more work with buyers and stronger communication with vendors.
He had two properties pass at the weekend, including a three-bedroom brick veneer house at Kinther Court, Highton.
“We didn’t have any bidding but post auction we had some negotiations which is still ongoing. We expect it to be sold by the end of the week,” he said.
Mr Natonewski said his agents were seeing more conditional buyers than unconditional buyers, making it harder to clear auctions.
But he said the auction process should still deliver better results.
“I still think the process is important. It puts a deadline on a sale,” he said.
“If we didn’t do that for a couple of properties this year we wouldn’t even be getting close to a sale.
“It’s about managing the vendors expectations and I guess after a four week period generally they are in a more realistic position than what they were in week one as opposed to a private sale.”
Properties also passed in at Belmont, Drumcondra, Newtown, Manifold Heights and Rippleside, though agents were in talks with buyers for several homes. No auctions on the Bellarine Peninsula or Surf Coast were successful at the weekend.